Hong Kong’s Economy Slows More Than Forecast Despite AI Boom

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessHong Kong's Economy Slows More Than Forecast Despite AI BoomHong Kong’s economic growth slowed more than forecast last quarter, even as a global rush to invest in artificial intelligence turbocharges the city’s exports.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.0mc9](b7ugba0ec)v41ni66s_media_dl_1.png Hong Kong Census and Statistics(Bloomberg) — Hong Kong’s economic growth slowed more than forecast last quarter, even as a global rush to invest in artificial intelligence turbocharges the city’s exports.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountGross domestic product expanded 4.3%, compared with 5.9% in the first three months of the year. The median forecast of economists surveyed by Bloomberg was 4.9%. On a quarter-on-quarter basis, GDP shrank 0.6%, its first decline in nearly four years, according to advance estimates released Friday by the Census and Statistics Department. Private consumption, government spending and investment grew at a slower rate in real terms compared with the first quarter, it said in a statement. Until the surprise slowdown, the Asian financial center has been on an upswing, helped by a surge in AI-related shipments alongside a pickup in consumption and investments. The transshipment hub has become a vital conduit for high-tech goods moving in and out of China, emerging as a key node in the booming AI trade across the continent.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“Looking ahead, the Hong Kong economy should continue to pose solid growth in the second half of 2026, a government spokesman said. “Vibrant global demand for artificial intelligence-related products should bolster merchandise exports, while exports of services should benefit from sustained growth in visitor arrivals and steady demand for financial and business services.”At the same time, Hong Kong is vulnerable to the oil shock triggered by the Middle East conflict, as it imports nearly all of its energy and relies on fossil fuels for power generation. Hong Kong’s exports surged by the most in more than four decades to hit a record in June, growing faster than imports for the first time this year. Almost all of its trade is driven by re-exports, with the city producing little AI hardware itself.(Updates with data details in third paragraph, adds government comment.)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.